Our market development work is important to achieving our statutory objective to promote competition in, reliable supply by and the efficient operation of the electricity industry for the long-term benefit of consumers.

If an anomalous event or outcome occurs in the market or the broader electricity sector, we investigate it to determine the causes and whether something can or should be done to prevent such an event or outcome from occurring again.

Transpower, as the system operator, to provide information, and short- to medium-term forecasting on all aspects of security of supply, and manage supply emergencies

us, as the body responsible for the Code, to specify the system operator’s security of supply functions and how they are to be performed and reported on

the Security and Reliability Council to provide independent advice to us on the performance of the electricity system, the performance of the system operator, and reliability of supply issues.

We require the system operator to produce, publish, implement and comply with:

a security of supply forecasting and information policy (SOSFIP) which must specify the:

regular monitoring that the system operator will publish to illustrate how system assets are being used to manage security of supply

specify the annual reporting that the system operator will publish to assess whether security of supply standards are likely to be met for at least the next five years

an emergency management policy (EMP) that sets out the steps the system operator must take during an extended security of supply emergency

a system operator rolling outage plan (SOROP) that sets out the thresholds at which the system operator will implement rolling outages and the actions that the system operator and other industry participants must take in the event of rolling outages.

We can choose to approve or decline any SOSFIP, EMP or SOROP that the system operator puts forward.

Security and Reliability Council (SRC)

The SRC provides independent advice on the performance of the electricity system, the performance of the system operator, and reliability of supply issues.

Official conservation campaigns

An official conservation campaign is a period during which the system operator calls on New Zealanders to voluntarily reduce their electricity usage.

We require an official conservation campaign to be implemented when the risk of shortage (as assessed under the SOSFIP) exceeds 10% and is forecast to continue to do so for at least one week.

Official conservation campaigns may be declared only by the system operator. The system operator may declare an official conservation campaign in respect of the South Island only, or all of New Zealand.

Customer compensation scheme

When an official conservation campaign is in force, retailers are required to compensate qualifying consumers in accordance with the customer compensation scheme.